Cryptocurrency lending company Genesis files for bankruptcy

Cryptocurrency lending company Genesis on Friday officially declared bankruptcy, in the latest blow to the market following the bankruptcies of FTX and BlockFi late last year.

The bankruptcy announcement comes after the Securities and Exchange Commission accused Genesis of illegally selling cryptocurrencies.

On November 16, the company froze redemptions and issuance of new loans after an “abnormal” number of withdrawal requests exceeded its current liquidity, citing the market turmoil caused by the FTX bankruptcy.

Genesis was originally set up as a Bitcoin cryptocurrency trading desk with the possibility to trade large amounts of Bitcoin. The company belongs to the Cryptocurrency Group, a conglomerate of more than 200 digital currency exchange companies.

Earlier this month, Genesis announced that it would cut 30 percent of its staff, down to 145 employees.

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The bankruptcy filing of Genesis is the latest blow to the cryptocurrency market, which has collapsed in value over the past year by about $1.3 trillion.

Genesis reportedly owes 50 of its largest creditors about $3.4 billion, according to the bankruptcy filing. Cryptocurrency and Former US Olympic Rowers.

And (Genesis) entered into a major dispute with (Gemini) over the fate of $ 900 million in assets deposited by Genesis customers with the first. The product, called Gemini Earn, was sold to investors as an opportunity to earn up to 7.4 percent interest on their cryptocurrency holdings.

About 340,000 Earn users have not been able to access their funds since last November, when Genesis halted withdrawals due to volatility in the cryptocurrency markets.

Last week, the Securities and Exchange Commission charged Genesis and Gemini with illegally selling crypto assets to investors.

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